The Commonwealth is set to pump an extra $1.2 billion into incentives for training and apprentices as the Federal Government seeks to boost the economy in response to COVID.

In an interview with Chris Uhlmann on Channel Nine’s Weekend Today show, Treasurer Josh Frydenberg confirmed that the Government extend the  Supporting Apprentices and Trainees Wage Subsidy scheme under which employers can claim up to $7,000 per quarter for taking on a new apprentice or recommencing apprentice. Previously costing $2.8 billion set to conclude on March 31 next year, the program will now be extended until September 30, 2021 in a move that is expected to create up to 100,000 additional apprenticeships and cost an extra $1.2 billion.

“…we want the skills of today and tomorrow…” Frydenberg told Uhlmann.

“We want people to be working in the trades, because that’s going to be critical to our construction sector, but we also want people working in IT. You’ve heard the Prime Minister lay out our manufacturing plan because there’s a real comparative advantage for us in that place. But today we’re announcing $1.2 billion to help create more apprenticeships and traineeships. This builds on the $2.8 billion we’ve already announced, bringing to $4 billion the total amount that we are providing to create more apprenticeships and our announcement today will help create 100,000 apprenticeships.

“Whether you are a baker or a butcher, whether you are a sparkie, whether you are a plumber or a carpenter, you are getting support from the Morrison Government.”

Housing Industry Association Managing Director Graham Wolfe welcomed the move.

“As we reach the end of 2020 and students are considering their next step in 2021, an apprenticeship in residential building, which has remained open for business throughout COVID, should be seen as a real opportunity.

“The $2.8 billion already provided under this wage subsidy has made a real difference for the housing industry and has supported the majority of our existing apprentices continue their study and training this year.

“Retaining apprentices in the building trades next year will underpin the need for a steady supply of skilled trades people over the next stage of the home building cycle.

“As JobKeeper and other incentives reach a conclusion businesses may have been challenged to keep on their existing trainees and apprentices. Equally taking on a new apprentice may have seemed like a significant hurdle.

“We know that employment incentives work – the first two tranches of SAT and JobKeeper have shown this. Today’s announcement is as a sensible and targeted approach to supporting the class of 2020 and those businesses that continue to operate in these challenging times and support Australia economic recovery.

“This new assistance will mean that not only are apprentices kept in the jobs they have today, but new apprentices can find work, businesses can continue to build and Australia can maintain a healthy level of skilled tradespeople into the future.”